Category Archives: ND

Northern District of Illinois

Illinois Foreclosure Statistics

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7th Cir. Opinions

7th Circuit Opinion Summaries courtesy of Justia.com

United States v. Rogan

Bankruptcy, Criminal Law, Government, White Collar Crime

River Road Hotel Partners, LLC v. Amalgamated Bank

Bankruptcy

Bloomfield State Bank v. United States

Bankruptcy, Real Estate & Property Law, Tax Law

Costello v. Grundon

Bankruptcy, Commercial Law, Securities Law

CDX Liquidating Trust v. Venrock Assocs., et al

Bankruptcy, Business Law, Securities Law

Reedsburg Util. Comm’n v. Grede Foundries, Inc.

Bankruptcy, Utilities Law

Kimbrell v. Brown

Bankruptcy, Injury Law

Congratulations to the New Chief Judge of the Bankruptcy Court (ND IL)

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Congratulations to Judge Bruce W. Black, who will become Chief Judge of the Bankruptcy Court for the Northern District of Illinois, replacing current Chief Judge Carol Doyle. Chief Judge Black will continue to hear all matters assigned to the Joliet Call on Fridays, which includes cases filed in Will, Grundy, Kendall and LaSalle counties. His chambers will be moving from the 6th to the 7th floor of the Dirsken Federal Building in Chicago. Likewise, his Courtroom will  be changing to Room 719 and Chambers will be located in Room 756. All pending, previously assigned Eastern division cases (with a few exceptions) that do not include the four counties making up the Joliet call will be re-assigned to other judges in the Eastern Division immediately. If your case is affected, you will receive a notice from the Court.   
Click here to view this information on the Bankruptcy Court’s website.

Naperville’s iconic MetroWest building in foreclosure

By David Sharos for The Naperville Sun

The 10-story MetroWest building, known for the N-shaped facade designed by Chicago architect Helmut Jahn in 1986, is regarded by many passing motorists as an unofficial insignia for the city of Naperville.  But Crain’s Chicago Business says that the building defaulted on a $23.5 million loan that came due May 1, which means that foreclosure may be looming down the road. Interestingly, a former tenant said there was no evidence that the building or its owners were in financial trouble.

In re Netzel, 08-046723 (ND IL ED) (J. Doyle)

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Issued: January 20, 2011 by Judge Doyle

Case #: 09 B 46723, 10 A 01292

The Issue: Whether an individual creditor has  standing under  § 523(a)(4) to bring a direct action against directors of an insolvent corporation for breach of fiduciary duty.

The Story: Debtor owned a plumbing company.  Plaintiff claimed that Debtor breached his fiduciary duty to creditors after the plumbing company became insolvent due to the diversion of company funds to pay for the Debtor’s personal debts.  Creditor claimed that the debt was non-dischargeable in bankruptcy under Rule 523(a)(4).  The court held that the individual creditor lacked standing.   Also a good walk thru on Illinois law about “Special Circumstances Fiduciary Duty.”

Click here to view and download the opinion in .pdf format.

In re Jones, 10-04352 (ND IL ED)(J. Hollis)

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In re Willie and Peggy Jones, 10-004352

Ruling issued Feb. 24, 2011

By the Hon. Pamela S. Hollis

The Issue: A creditor moves to Amend the Plan and for Relief from Plan pursuant to 11 U.S.C. § 1329, relief from staypursuant to 11 U.S.C. § 362(d), and relief from the Confirmation Order, pursuant to Federal Ruleof Civil Procedure 60(b).

The Opinion: In this case the creditor was a pawn shop and the debtor had a loan from the creditor secured by jewelry.  The debtor listed the pawn shop as a creditor and the plan allowed for repayment of the loan.  The pawn shop received notice its status as a creditor and of the plan; however, the pawn shop never appeared in court nor objected to the plan.  Only after the plan was confirmed and it had received the first payment, did it file this motion.  The court dismissed all counts of the motion.  The 1329 claim was dismissed because the pawn shop “is a secured creditor and only a debtor, the Trustee, or the holder of an unsecured claim can seek modification.”  The court does a thorough job of analyzing the FRCP 60(b) and 11 USC 362(d) claims.

Click here to view and download the Opinion as to the Motion to Amend
Click here to view and download the Opinion as to the Motion for Damages

In re Louis Jones Enterprises, Inc. (Bkrtcy.N.D.Ill.)

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The Facts: Chapter 11 Debtor failed to segregate its employee’s wages and apply a portion toward a group health insurance premium. When those funds were seized later by a creditor, the employees left with a 5th priority wage claim and a lapsed insurance policy.

The Issue
: Employee alleged that the funds taken should be classified as a contribution to an employee benefit plan arising from services rendered within 180 days before the filing date of the case.

The Upshot: The Court agreed that the funds had been earned with the 180 days before the case was filed, and also ruled that employees also had an administrative expense claim for wages that were withheld but not applied during the post-petition. Finally, the Court ruled that employees had a claim for un-reimbursed medical expenses that would have been covered under the policy, had it not expired.